- The Indian rupe jumps higher in relation to the American dollar when Trump Fed Fed attacks.
- Powell Fed stated that tariff -based inflation may be indefinite.
- The RBI monthly newsletter shows that the Indian economy remained resistant in May.
The Indian rupe (INR) is gaining violently compared to the American dollar (USD) on Thursday. The USD/INR pair moves to almost 85.65 in European commercial hours, the lowest level observed in 10 days. The pair weakens when the US dollar (USD) has renewed the three -year level three years United States (USA) President Donald Trump attacked the chairman of the Federal Reserve (FED) Jerome Powell for not supporting the cuts of interest rates in the upcoming politics meetings, while testifying before the Senate on June 24-25.
US President Trump called Powell a “terrible” Fed during a conversation with reporters and raised the idea that he had three or four potential contenders to replace. “I know that in three or four people I intend to choose, Trump said, the agency’s report also said that the rivals will include the former governor of Fed Kevin Warsh, head of the National Economic Council Kevin Hassett, the current governor of Fedopher Christopher Waller and secretary of the treasury Scott Bessent.
Donald Trump’s attack on Fed’s independence in order to meet his economic program weakened the uniqueness of the American dollar. . American dollar index (DXY), which follows the Greenback value compared to the six main currencies, a decrease to almost 97.00.
When testifying before the Senate on Wednesday, Jerome Powell stated that the Fed is “cautious in the field of lowering interest rates”, because “inflation based on tariffs may prove persistent” for the economy when asked why he did not reduce interest rates despite relieving prices in the last few months.
Jerome Powell also warned that premature interest rate reductions may be harmful to the economy. “If we make a mistake, people will pay costs for a long time,” said Powell.
The price of the American dollar today
The table below shows a percentage change in the US dollar (USD) compared to the main critical currencies. The American dollar was the weakest in relation to Japanese yen.
| USD | EUR | GBP | JPy | BOOR | Aud | Inr | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.64% | -0.72% | -0.86% | -0.30% | -0.61% | -0.32% | -0.68% | |
| EUR | 0.64% | -0.02% | -0.29% | 0.36% | 0.07% | 0.28% | -0.02% | |
| GBP | 0.72% | 0.02% | -0.26% | 0.38% | 0.09% | 0.35% | -0.00% | |
| JPy | 0.86% | 0.29% | 0.26% | 0.61% | 0.31% | 0.57% | 0.22% | |
| BOOR | 0.30% | -0.36% | -0.38% | -0.61% | -0.29% | -0.05% | -0.39% | |
| Aud | 0.61% | -0.07% | -0.09% | -0.31% | 0.29% | 0.25% | -0.10% | |
| Inr | 0.32% | -0.28% | -0.35% | -0.57% | 0.05% | -0.25% | -0.28% | |
| CHF | 0.68% | 0.02% | 0.00% | -0.22% | 0.39% | 0.10% | 0.28% |
The heat map shows percentage changes in the main currencies towards each other. The basic currency is collected from the left, and the quote currency is collected from the upper order. For example, if you choose an American dollar on the left column and move along the horizontal line to Japanese Jen, the percentage shift displayed in the field will represent USD (base)/JPy (quote).
Daily Digest Market Movers: Indian rupee moves higher in the mood of risk, domestic economic resistance
- The Indian rupee gains in relation to the American dollar on Thursday, because Bank Reserve India (RBI) stated in a monthly newsletter from May that the Indian economy remained resistant despite the coatings of the novel commercial policy imposed by American and geopolitical voltages.
- “In this state of elevated global uncertainty, various high -frequency indicators for May 2025 indicate resistant economic activity in India in the industrial and service sector,” RBI said in the article “Status of the economy”, Reuters said.
- The Indian Central Bank stated that the current financial conditions are beneficial for transferring interest rates in the economy. In the announcement of monetary policy at the beginning of this month, the RBI unexpectedly reduced the repo rate of 50 base points (BPS) to 5.5% and announced a decrease in cash reserves by banks to stimulate economic growth.
- This week, the Indian rupee remained a clear result, because the oil price will fall sharply after the arms suspension between Israel and Iran on Monday. Israel-Iranian truce excluded fears before closing the Hormuz Strait, a fragment of almost a quarter of global oil supply.
- Lower oil prices bode well for the currencies of countries such as India, which is largely based on the import of crude oil to meet its energy needs.
- Meanwhile, the Indian stock market still operates strongly, raised by risk moods after the separation of Israel-Iran. Nifty50 drinks almost 250 points to nearly 25,500, the highest level in the year so far. However, foreign institutional investors (FII) have been selling Indian campaigns over the past three shopping days. The cumulative sale of FII in the period from Monday to day is RS. 9 568.13 crowns.
- Going further, investors will focus on the US personal consumption price indicator (PCE) to May, which will be published on Friday. It is expected that the preferred FED inflation indicator shows that inflationary pressure has been growing faster in the year. The impact of inflation data is expected to be included in the American dollar and market expectations regarding the perspective of the Fed monetary policy, because investors are more afraid of increased inflation expectations in connection with uncertainty about tariff policy.
Technical analysis: USD/INR sees more disadvantages up to 86.60
The USD/INR pair is seeking to maintain a 20-day interpretation average (EMA) about 85.90, which suggests that the short-term trend has become uncertain.
The 14-day relative strength (RSI) indicator moves vertically to almost 50.00 after the remaining above 60.00 in the last few commercial days, which indicates powerful bears.
On the other hand, the highest level of June 12 to 85.70 will act as key support for Major. On the other hand, the highest level of June 24 86.60 will be a key obstacle to the couple.
